The global renewable energy sector is experiencing unprecedented growth but is insufficient to meet international climate goals.

According to the International Energy Agency’s (IEA) Renewables 2024 report, renewable energy capacity is expected to grow by 2.7 times by 2030. While this progress is significant, it still falls short of the COP28 goal to triple capacity by the decade’s end.

Renewables could account for nearly half of global electricity generation by 2030, up from 30% today. Solar power is leading the way, driven by plummeting costs and quicker installation timelines.

Solar PV is set to overtake wind and hydropower as the largest renewable electricity source by the end of the decade.

China dominates the global renewable expansion, contributing 60% of new capacity by 2030. Thanks to supportive policies and large-scale manufacturing, solar and wind in China are now as cheap as or cheaper than coal in many regions.

Other regions, like the U.S. and Europe, are also ramping up their efforts, driven by tax credits and competitive auctions.

India is emerging as the fastest-growing major renewable energy market. New rooftop solar programs and utility reforms are fueling rapid growth.

Meanwhile, the U.S. Inflation Reduction Act continues to boost wind and solar deployment, and Europe is steadily scaling up capacity through targeted policies.

While electricity is the most visible success story, other sectors struggle to catch up.

Renewable fuels like biofuels, hydrogen, and e-fuels will account for just 6% of transport energy demand by 2030.

Renewable solutions like heat pumps and solar thermal systems are growing in heating, but fossil fuels still dominate overall demand.

Manufacturing tells a mixed story. Solar PV production is skyrocketing, with global capacity expected to reach 1,100 GW by 2024—more than double the projected demand. However, this oversupply has caused module prices to drop by 50%, threatening the financial stability of smaller manufacturers.

Wind energy manufacturing, on the other hand, faces severe bottlenecks, especially in offshore wind, risking delays for critical projects.

Emerging economies hold enormous potential for renewable energy, but progress could be faster. High financing costs, weak grid infrastructure, and inconsistent policies hinder growth.

The IEA calls for better support, including clear long-term targets and incentives to attract private investment.

Grid infrastructure remains one of the biggest obstacles to renewable expansion. Over 1,650 GW of renewable capacity is currently waiting to be connected to grids worldwide.

In some countries, like Chile and the UK, curtailment rates—where renewable energy goes unused—have reached up to 15%. Without investment in grids and storage, much of this energy could be wasted.

Despite high expectations, renewable hydrogen and e-fuels are not yet significant players. Renewable hydrogen will account for only 4% of global hydrogen production by 2030.

Biofuels are growing but remain a small part of the energy mix, particularly in aviation and shipping.

The IEA report underscores that while renewable energy proliferates, the pace must accelerate. Governments and industries must reduce barriers, streamline permitting, and invest in grid upgrades.

Emerging markets, in particular, require targeted policies to unlock their vast potential.